(With GFX sent to designers)
Gandhinagar: Backed by a strong manufacturing sector, Gujarat has the second lowest debt to GSDP (gross state domestic product) ratio in the country, which is an indicator of a healthy economy based on strong financial footing.
Information provided by the Union govt in the Lok Sabha on Monday stated that Gujarat’s debt to GSDP ratio at the end of March stood at 18.2%, higher only than Odisha, which had a debt to GSDP ratio of 13.9%. Gujarat’s debt as of March was Rs 4.67 lakh crore against Odisha’s debt of Rs 1.21 lakh crore.
Quoting the Reserve Bank of India’s report titled ‘State Finances: A Study of Budgets of 2023-24′, the Union govt said that Arunachal Pradesh has the highest debt to GSDP ratio at 50.4%, followed by Punjab (47.6%), Nagaland (44.3%), Himachal Pradesh (44.2%) and Manipur (39.5%).
“As per the data available in the report, the ratio of interest payment to total outstanding liabilities of state govts for the year 2023-24 ranges from 4.21% to 7.01%,” the Union govt said in response to a question by MP Dinesh Chandra Yadav.
The GSDP of a state is the total value of goods and services that are produced by it during a year. A lower debt to GSDP ratio is an indicator that a state will be able to pay back its debt with what it produces.
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